Too Little ? Too Late ?

 

 

Context :

Wage relief for those who lost jobs in lockdown  /  Oct 6  /  TOI

Extract :

Ø  Employees’ State Insurance Corporation-registered workers who have lost their jobs during the lockdown can claim 50 % of their wages for up to 3 months as UNEMPLOYMENT RELIEF even if they have resumed work

Ø  The benefit can also be availed by ESIC members who may lose jobs in December

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On 08 April 2020 , I sent following E Mail to our Policy Makers :

 

Economy : The Way Back 

Extract :

 

Ø  While such a GRADUAL SHIFT takes place over a period of next 12 weeks , here is what Government should do to make this SLOW TRANSITION, as painless as possible :

 

       Ø    For 2020 – 21 , only 50 % of the Personal Income to be taxed for

             individual tax payers {  Revenue loss =  Rs  3 lakh*Crore }

 

            

https://www.indiatoday.in/business/budget-2020/story/govt-stares-at-tax-shortfall-of-rs-2-lakh-crore-room-for-personal-income-tax-relief-limited-1640397-2020-01-27

 

      Ø    For Corporate, 25 % of salaries/wages paid during July – Aug – Sept ,

            to be borne by Govt

 

           Only to those Corporate, which implement by end-May, Mobile based

           Attendance System as described at :

           

            From BAD to MAD                   [ 01 June 2016 ]

            MAD goes to Mandi                  [ 02 Jan 2020  ]

 

 

 

    Ø    Amounts of donations made to PM-CARES fund to be treated towards

          CSR obligations with provision for carry forward any excess amount

  

          

 

    Ø    No GST for goods sold during July – Aug – Sept ( assuming production

          will reach normal level by June end){ Revenue loss =  Rs 3 lakh*Crore }

 

 

           

    Ø    Since above-mentioned benefits will drain the government exchequer,

          leaving very little funds for planned Infrastructure, I strongly urge the

          Government to issue  ELEPHANT BONDS , with modifications

        

          as described at :

              Congratulations, Shri Surjit Bhallaji,            [ 31 Oct 2019 ]

 

Only yesterday, EU countries have started debating issue of CORONA BONDS to help out the countries worst affected by this crisis ( viz: Italy – Spain – UK – France )

 

 

QUESTION :

 

As far as India is concerned, the Government is faced with a “ Trade-Off “ between :

   
     #   Saving lives through a gradual / phased out lifting of lockdown,  

     

          AND

   

     #  Getting back to NORMAL economic activities , as fast as possible , with

         minimum   hardship to citizen

 

 

QUO VADIS ?  Which way should we take ?

 

I hope, following diagram will help our Policy Makers to quantify the PROS and CONS of each of their alternatives

 

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With regards,

 

Hemen Parekh  /  hcp@RecruitGuru.com  /  16 Oct 2020